Company Snapshot

Property:	Spanish Mountain Gold Project
Ownership:	100% Ownership
Symbol:	TSX.V: SPA | OTC: SPAZF
Location:	British Columbia, Canada
Share Structure:	Shares Issued & Outstanding: Fully Diluted:	341 Million 350 Million
Market Capital:	~ $60 Million
Management:	Larry Yau, CEO Sharon Ng, CFO Judy Stoeterau, VP of Geology Raymond Mah, Project Director Doug Ramsey, Director, Sustainability and Indigenous Affairs
Board of Directors:	Larry Yau Christopher Lattanzi Don Coxe Lembit Janes Brent Bergeron Garnet Dawson Peter Mah Richard Orazietti

Spanish Mountain's current focus:

1. De-risk : Deliver project milestones within compressed timeline by fast tracking environmental assessment and permitting activities.

2. Optimize: Enhance project economics and resource with Targeted Studies and Resource Expansion. 

 

Highlights of PFS results

Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation.  The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures.

Project Economics

			Gold Price (USD)
		Units	$1,200	$1,400	$1,600*	$1,800	$2,000	$2,200	$2,400
Pre-Tax Economics
	NPV(5%)	$M	$125	$486	$848	$1,209	$1,570	$1,931	$2,293
	IRR	%	9%	18%	25%	31%	36%	42%	47%
	Payback	Yrs	5.4	4.0	3.2	2.7	2.4	2.1	1.9
	Cumulative Free Cashflow from Operations	$M	$1,040	$1,583	$2,127	$2,670	$3,214	$3,758	$4,301
Post-tax Economics
	NPV(5%)	$M	$129	$415	$655	$888	$1,119	$1,350	$1,580
	IRR	%	9%	16%	22%	27%	31%	36%	39%
	Payback	Yrs	5.5	4.0	3.3	2.8	2.5	2.2	2.0
	Cumulative Free Cashflow from Operations	$M	$1,041	$1,454	$1,797	$2,140	$2,484	$2,828	$3,173

* PFS Base Case

Reserve

The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS.  Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.

	Tonnage (Mt)	Au Grade (g/t)	Gold (Moz)	Ag Grade (g/t)	Silver (Moz)
Proven	40.8	0.79	1.03	0.67	0.88
Probable	55.1	0.74	1.31	0.74	1.30
Total P&P Reserve	95.9	0.76	2.34	0.71	2.18

 

Select Operational and Cost Metrics 

	Unit	Yrs 1-6 Avg.	LOM Avg.
Gold Grade	g/t	0.88	0.76
Annual Gold Production	Koz	183	150	(peak production 211Koz)
Annual Silver Production	Koz	68	63
Cash Cost /oz	US$	$602	$696
All-in-sustainable Cost/oz	US$	$707	$801
Total Cost/ oz	US$	$974	$1,068

 

Unit Cost of Production

	Unit	CAD	USD
Mining	$/t mined	$2.22	$1.69
Mining	$/t milled	$10.80	$8.21
Processing	$/t milled	$6.58	$5.00
G&A	$/t milled	$1.36	$1.04
TSF	$/t milled	$0.17	$0.13
Water treatment	$/t milled	$0.47	$0.36
Total	$/t milled	$19.38	$14.73

 

Initial Capital Expenditures

Direct Costs	C$M	US$M
Overall Site	$26	$19
Open Pit Mining	$73	$56
Ore Handling	$34	$26
Process	$125	$95
Tailings and Water Management	$40	$30
Environmental Monitoring	$2	$2
On-site Infrastructures	$42	$32
Off-site Infrastructures	$64	$49
Water treatment Plant	$10	$7
Total Direct Costs	$416	$316
Project Indirects	$102	$78
Owner's Costs	$14	$10
Contingencies	$75	$57
Total	$607	$461

 

Resource Expansion

The Company has an ongoing campaign to continue its track record of resource expansion.

As part of the PFS, an update of the Mineral Resources has been prepared based on the pit shell developed using assumed cost parameters and assumptions.  The Project’s Mineral Resources, inclusive of the Mineral Reserves reported above, are as follows:

 

Classification	Run of Mine (Mt)	Gold Grade (g/t)	Silver Grade (g/t)	Contained Gold (Moz)	Contained Silver (Moz)
Measured	68.4	0.59	0.67	1.3	1.5
Indicated	225.7	0.47	0.73	3.4	5.3
M&I Resources	294.2	0.50	0.72	4.7	6.8
Inferred Resource	18.3	0.63	0.76	0.4	0.4

 

*See Cautionary Statement